Chinese officials appear to have retreated from their controversial plan to install an internet filtering system on computers in the country.

The industry and information technology minister, Li Yizhong, said today that the notion that the Green Dam programme would be required on every new computer was “a misunderstanding” spawned by poorly written regulations.

He said all public computers in schools and internet cafes must install the software – but the government “respected the choice of individuals who do not install it”. He said: “Those who overstated and politicised the issue, or even attacked China’s internet regulation, are irresponsible,” and added that pornography was the main target of the software.

Its initial plans met with fierce opposition when they were announced, with many internet users fearing that the software – which blocks pornographic, violent and politically sensitive content – would also be used to monitor behaviour, curb access to information and track users.

At first it appeared that the campaign, which was backed by the US government, was gaining ground. However last month, hours before the programme was due to be implemented, officials briefed that there would be a delay, but the plans would eventually go ahead.

Today’s announcement appears to make that suspension permanent, with Li saying the government would neither require the programme to come pre-installed on new computers, nor force computer makers to include the programme on a CD with optional software.

Palm Pre users watch out. Palm may know a lot more about you than you would like to share.

Programmer Joey Hess found that Palm Pre’s operating system webOS sends his GPS location back to Palm every day. Hess also found code that sends Palm data on which webOS apps he has used each day, and for how long he used each one.

“I was surprised by this,” Hess, who bought the Pre about a month ago, told Wired.com. “I had location services turned off though I had GPS still on because I wanted it to geotag photos. Still I didn’t expect Palm to collect this level of information.”

In its defense, Palm says the data is used to offer better results to users. For instance, when location-based services are used, the Pre collects information to give users relevant local results in Google Maps, says Palm.

“Palm takes privacy very seriously and offers users ways to turn data collecting services on and off,” says Palm in a statement. “Our privacy policy is like many policies in the industry and includes very detailed language about potential scenarios in which we might use a customer’s information, all toward a goal of offering a great user experience.”

Palm’s actions trigger questions about consumer privacy and the extent to which handset makers and developers are gathering and using data about buyers’ behavior.